Stop loss on IB
- Thread starter lojze
- Start date
I'm new here as this is my first post.
I use IB and usually enter Stop Limit orders to buy once a certain price level is hit. I trade NASDAQ stocks only.
Last week I entered an order on XMSR using a Stop Limit order. I watched the stock trade up to and then past my stop price (aux. price). The green light that indicates an order is being worked never came on.
I can understand that I possible missed the market because my limit price wasn't attainable, but shouldn't the order have at least triggered to try and get my price? i.e., the green light should have came on but no trade occured because mrket moved quickly past my limit price. No?
I use IB and usually enter Stop Limit orders to buy once a certain price level is hit. I trade NASDAQ stocks only.
Last week I entered an order on XMSR using a Stop Limit order. I watched the stock trade up to and then past my stop price (aux. price). The green light that indicates an order is being worked never came on.
I can understand that I possible missed the market because my limit price wasn't attainable, but shouldn't the order have at least triggered to try and get my price? i.e., the green light should have came on but no trade occured because mrket moved quickly past my limit price. No?
I don't think that they handle stop orders correctly. Therefore stop limits must be the pits. I have entered stops and watch the stock trade and not get an execution . Here is an example
of a trade. I was long a stock and put in a stop at 29.96.
The stock printed according to the TWS at 29.98 then 29.96
then 29.93. Well you would think at this point I am due an execution at at least 29.93
Well I got a price of 29.80.
After the stock gapped down on a block print from .93 to .80.
I called and got no satisfaction at all. Now I'm afraid to use stops
and that has put a dent in the way I want to protect myself.
Lotsa luck
of a trade. I was long a stock and put in a stop at 29.96.
The stock printed according to the TWS at 29.98 then 29.96
then 29.93. Well you would think at this point I am due an execution at at least 29.93
Well I got a price of 29.80.After the stock gapped down on a block print from .93 to .80.
I called and got no satisfaction at all. Now I'm afraid to use stops
and that has put a dent in the way I want to protect myself.
Lotsa luck
The fact that this topic regarding stop orders continue to rage on should give IB the messsage that their method of triggering stop orders is NOT in the best interest of their customers.
Why can't they just be like the majority of the other brokers regarding how they trigger stop orders?? Even though I've heard many of their explanations, I still don't understand their logic.
At the least, they should give us the option of routing stop orders in a native manner directly to ARCA so that the order will get triggered as soon as a trade takes place at the stop price.
http://www.tradearca.com/technology/system/order_types.asp
As it was answered in another thread I started yesterday, even if we submit a stop order directly to ARCA, it only gets triggered under IB's rules.
So it looks like IB doesn't offer full direct access to the ECNs. Maybe IB does this in order to keep it's costs down. In the end, we get what we pay for. Otherwise, we have to pay the price with other brokers to get true direct access to the ECNs.
It's too bad that they're SO CLOSE to getting it right for many of us, but just not close enough. Can't they just give us the choice of selecting how we want stops triggered?!?
Why can't they just be like the majority of the other brokers regarding how they trigger stop orders?? Even though I've heard many of their explanations, I still don't understand their logic.
At the least, they should give us the option of routing stop orders in a native manner directly to ARCA so that the order will get triggered as soon as a trade takes place at the stop price.
http://www.tradearca.com/technology/system/order_types.asp
As it was answered in another thread I started yesterday, even if we submit a stop order directly to ARCA, it only gets triggered under IB's rules.
So it looks like IB doesn't offer full direct access to the ECNs. Maybe IB does this in order to keep it's costs down. In the end, we get what we pay for. Otherwise, we have to pay the price with other brokers to get true direct access to the ECNs.
It's too bad that they're SO CLOSE to getting it right for many of us, but just not close enough. Can't they just give us the choice of selecting how we want stops triggered?!?
Stops don't work in afterhours. And yes, IB does handle their stops in a weird fashion. But once you learn how to deal with it, its manageable. Lets say you want to have a sell stop at 40. Rather than setting that stop at 40, set it at 40.03, if you think the spread on this stock is normally 3 cents. this gets around the IB rule of activating when the ask is the stop, rather than the bid(and vice versa for buy stops). Its not perfect, but it will cut down on slippage.
Originally posted by moffitt
I don't think that they handle stop orders correctly. Therefore stop limits must be the pits.
I use stops 100% of the time through IB to enter and exit and found that once you get used to their backwards algorithm its not too bad. It does cost a little slippage sometimes, but there isn't a good alternative cost-wise.